GameStop's Stock Is Nearing Resistance In A Pennant Pattern

Gamestop Corp. GME shares are rallying Wednesday as traders try to squeeze the stock higher.

Late Tuesday, a GameStop website went live saying the company was going to make a new non-fungible-token (NFT) platform over the Ethereum ETH/USD blockchain platform. This platform seemingly confirms speculations from April that the company may be venturing into the world of NFT’s and cryptocurrency.

Other notable Reddit stocks with increased trading volume today include BlackBerry LTD BB, AMC Entertainment Holdings Inc. AMC, and Koss Corp KOSS.

See Also: AMC Entertainment Skyrockets And Options Traders Pile In

GameStop Daily Chart Analysis:

• GameStop looks to be forming into what technical traders may call a pennant pattern.
• The stock is trading above both the 50-day moving average (green), and above the 200-day moving average (blue), indicating sentiment in the stock looks to be bullish.
• The price may find support near each of these moving averages in the future.

• See also: How‌ ‌to‌ ‌Buy‌ ‌GameStop‌ ‌(GME)‌ ‌Stock‌

Key Levels To Watch:

• The stock looks to be nearing the resistance line in the pennant pattern. The price has been condensed between narrowing highs and lows and could be ready to break out soon.
• The stock would need to cross above the pattern resistance line to see a possible further push up.
• The stock falling below the pattern support could let the stock see a steep dropoff.

What’s Next?

Bullish technical traders would like to see the stock break out of the pennant pattern and see an upwards move. Consolidation after a breakout may let the stock continue further on its rise.

Bearish technical traders would like to see the stock break out of the pattern to the downside. A cross below the line connected by the lows may bring about a large drop off.